ITFA Provisions Will Stay on Trade Bill Despite Detractors, Thune Predicts

Thune doubts any detractors who would prefer the Internet Tax Freedom Act (ITFA) to move along with the more controversial Marketplace Freedom Act could strip ITFA’s inclusion from the conference version of the Trade Facilitation and Trade Enforcement Act (HR-644). That trade bill stalled last month, and Senate GOP Whip John Cornyn, R-Texas, told reporters there would “have to be a conversation” in the new year with Marketplace Fairness Act backers due to a dispute about how to move forward (see 1512150056).

“My sense is if the customs conference report moves, ITFA will move on it,” said Thune, a backer of ITFA and a conferee for that customs conference report. “I know there’s still a lot of discussion and interest on the other issues that get drawn into that discussion. But I think if the customs conference report moves, and I think it will move soon, I think the Internet tax moratorium will be included in it, as it was reported in the House.”

One possibility under discussion is that a senator could raise a point of order to strip ITFA from the conference bill, citing lack of relevance of the ITFA provision to the underlying bill. The Senate would need 60 votes to stop that.

“I think you can expect that, that there’ll be some procedural attempts to strip that out,” said Thune. “But I don’t think the votes are going to be there. I think it’s going to be a very hard vote for people to vote to say as a matter of policy and practice in this country, that we’re going to allow taxes to go into place, that we’re going to allow states to impose taxes on the Internet. I just don’t think that’s going to happen. I know that right now, I think the vote count’s probably fairly close on that. … I think there’ll be 60 votes for keeping that in the bill.” He said he's aware of stakeholders whipping the vote but didn’t say leadership was involved in any whipping.

Thune is also eyeing drones and the Trans-Pacific Partnership trade deal, which involves telecom, tech and copyright and needs congressional approval.

“We’ll take a look at it,” Thune said of the Federal Aviation Administration’s registration process for drones. The Commerce Committee is planning to take on FAA reauthorization this year, which will involve reviewing those procedures, he said. “Because we’re going to legislate on that this year, we’ll have the last word on it. We are obviously watching very carefully what the FAA is doing and want to make sure that we have a policy in place that protects American airspace, protects people, but also want to do it in a way that’s respectful of people’s rights. So I think that hopefully in the end we’ll be able to strike the right balance but we’re following very carefully what the FAA is currently doing. We will visit that issue at the FAA reauthorization.” The Senate will wait for the House to “take the lead” on these issues, Thune said, saying he planned to meet with House Transportation Committee Chairman Bill Shuster, R-Pa., later that day.

Thune also wants Congress to address the Trans-Pacific Partnership, a priority for the Obama administration. The Telecom Industry Association announced its backing for the deal Tuesday and urged Congress to approve it. Sen. Orrin Hatch, R-Utah, is a key player in achieving Hill approval, Thune said: “I can’t feature a scenario where TPP moves if Senator Hatch isn’t actively engaged in supporting it. So I think [the United States Trade Representative has] got some work to do there. But that’s not to say that we couldn’t get to a place where down the road sometime later this year or maybe next year, we get it done. I think it needs to get done.” Hatch chairs the Finance Committee, where Thune is also a member. Thune referred to the deal as “very good in most respects,” with some exceptions. The “more likely scenario” is that the TPP gets addressed following the November elections, Thune said.